This bill proposes a referendum for the general election in November 2026, seeking voter approval for the issuance of bonds, refunding bonds, and/or temporary notes totaling up to $100 million for the "Transit Forward RI 2040" project. The funds will be allocated for improvements to the statewide transit system, including enhancements to bus stops, safety measures, and operational support for technology. The bill outlines the process for ballot labeling and voting, ensuring that the total amount of bonds issued does not exceed the approved figure. It also grants the general treasurer, with the governor's approval, the authority to issue these bonds, specifying that they must be in denominations of $1,000 or multiples thereof. Notably, the term "bond" is expanded to include "note," and "refunding bonds" now includes "refunding notes," clarifying the financial instruments involved.

Additionally, the bill establishes a capital development bond fund and allows for the acceptance of federal and private funds for the project. It mandates that any bonds or notes issued will be sold at no less than their principal amount and will be exempt from state taxation, with the state's full faith and credit pledged for repayment. The state board of elections must certify voter approval before certain sections of the act take effect. Sections 1, 2, 3, 11, and 12 will take effect upon passage, while the remaining sections are contingent upon voter approval. The bill emphasizes public involvement in the decision-making process regarding state funding for transit improvements.